Most Independent Contractors, Virtual Assistants, and quite a few Small Business Owners work and operate their business from a home office.
Taking the home office deduction when filing your taxes can be a daunting task. Currently, in order to take the deduction you must fill out Form 8829. This form is 43 lines of confusion and many people do not bother.
Beginning with the 2013 tax year, this deduction has been simplified. According to the White House, the IRS will be providing a new, simpler option to figure your home office deduction. The new option allows qualified taxpayers to deduct $5.00 per square feet of home office space, up to 300 square feet. They also state that the new form is much simpler than the current form and will save a total of 1.6 million hours in tax preparation time.
This is great news for the small business and I.C.